This week I interviewed Colin Widen, the CEO of Boston Innovation Capital (BIC), Life Science Nation’s (LSN) wholly-owned broker-dealer arm, to learn where investors are allocating funds, and the current focus on healthcare advancement within the digital health space.

BIC works alongside LSN and our network of investors to support early-stage companies in forging connections with investors, major pharma firms, and other strategic players in the life science world. By managing clients’ fundraising campaigns and connecting them to investors who are a good fit, BIC is able to address its, and LSN’s, mission of advancing new and innovative technologies to the clinic.

Interview with Colin Widen moderated by Ashley Durrer

AD: With billions of dollars being poured into digital health, why the sudden increase?

CW: “Healthcare needs to find a way to pay for digital health now that value-based care and hospital incentives are aligned to support lower costs in healthcare with improved patient care. There are new potentials for change within the telemedicine space in light of ongoing healthcare reforms and debate.”

AD: How will that turn out for those seeking funding?

CW: “Digital health initiatives will be the least impacted by changes to the American healthcare system, making them prime opportunities for investment this year.

“There is a much lower cost to creating software, virtual platforms, compliance tools, etc. than creating advances in biologics, drugs, and other life science advancements, making digital health an increasingly popular space for investors. Successfully investing in therapeutics or medical devices requires a great deal of expertise, not to mention the increased risk due to the potential failure in clinical trials. On the other hand, software is a recognizable, lower cost, and scalable business model that is often also easily adaptable when regulations change.”

AD: Where does BIC fit into global funding from client perspectives?

CW: “BIC is working tirelessly to support digital health technologies that will have a real impact on the healthcare system for our doctors, nurses, and hospitals. This year BIC is focused on digital health technologies, assets, and virtual tools, which can support doctors’, hospitals’, and nurses’ efforts with patients. However, this currently excludes consumer-based products and electronic medical record (EMR) initiatives.”

AD: What kind of client are you seeking now? Can you share a potential client profile?

“Investors are seeking companies within the top-tier of their specialization, and a proven business model within the market. Often these investors want to see that the product, software, tool, etc. are viable, which means it’s already being used within the market e.g. hospitals. This also includes an accompanying value proposition for payors and the company is receiving ongoing revenue for that service.”

BIC Global Network of Digital Health Investors are focused on:

Funding of $10M-50M

Min $3mm+ ARR

Niche companies within the top-tier of their specialization

Currently avoiding pure EMR focused and consumer-based products

The Future of Digital Health

There are innovations happening every day to help improve access to healthcare. 2018 has already seen an increase in the debate over healthcare reform, rising insurance costs, and uncertainty of coverage for millions of Americans. Advancements in technologies and virtual tools for doctors and hospitals could really help to streamline processes and reduce overall costs for themselves as well as the patients they serve.

We can’t wait to hear what new innovations are entering the digital health space.

About Colin Widen, CEO

Colin Widen, registered representative, is a seasoned executive with 25 years of sales, trading and portfolio management experience in major investment banks. Colin joined Deutsche Bank where he led a team providing consulting services about alternative asset allocation strategies to family offices and smaller endowments and foundations. In creating BIC, Colin has combined investment skills with the robust investor network of LSN to offer a unique platform. Colin is a registered representative and holds Series 7, 24, 63 and 82 registrations. His specialties include reconstructing hedge fund portfolios. analyzing private equity holdings and helping with strategy and execution of capital raise initiatives across the spectrum of today’s life science assets.

About Boston Innovation Capital

Boston Innovation Capital (BIC), a wholly owned subsidiary of Life Science Nation Holdings, became a FINRA-registered broker-dealer in 2016. BIC works alongside LSN’s other two divisions (LSN’s Investor Platform and Company Platform, and the RESI Conference Group) to support early-stage companies in forging connections with investors, major pharma firms and other strategic players in the life science world.

A Seoul-based venture capital firm founded in 2015 and affiliated with a leading pharmaceutical company in South Korea closed their first fund in 2016 and has recently raised a second fund of approximately $60M USD. The firm has made 8 investments to date, in 3 Korean and 5 USA-based companies. The firm continues to seek global opportunities. The firm generally participates in financings of Series B and beyond, participating in Series A rounds on a case-by-case basis. However, the firm has started to look for earlier stage opportunities and is most interested in spin-out assets and forming new companies in South Korea. Within this angle, the firm is highly interested in companies who are interested in entering the Korean market and looking to leverage on the capital and clinical infrastructure in South Korea.

The firm is focused on therapeutics companies and does not invest in medical devices, diagnostics, or digital health. The firm is open to considering assets of very early stages, even those as early as lead optimization phase. The firm considers various modalities, including antibodies, small molecules, and cell therapy. Currently, the firm is not interested in gene therapy. Indication-wise, the firm is most interested in oncology and autoimmune diseases but has recently looked at fibrotic diseases and certain rare diseases as well.

With regards to companies raising a Series A round, the firm prefers working with experienced management teams with high-profile scientific founders being involved. The firm incorporates a different strategy depending on the company’s headquarters. For companies based in South Korea, the firm serves as a hands-on, active investor and seeks board representation. In the USA, the firm prefers to be a more passive investor and generally seeks to co-invest with established venture capital firms that have a footprint in the USA.

A boutique venture capital firm founded in Hong Kong currently manages a $100M USD fund and a $200M RMB fund. The fund is industry agnostic within China while it focuses only on healthcare ex-China. The firm generally participates in Series A or B rounds but would also consider seed and growth-stage funding. Typical equity investment size ranges from $1-5M. The firm is open to both leading and co-investing. The firm is actively seeking new opportunities from across the world with a focus on companies in China, U.S., Europe, and Israel. The firm helps portfolio companies get into massive and fast-growing markets of China and Asia, and assists Chinese companies to expand abroad.

The firm is opportunistic across all subsectors of healthcare. Within MedTech, the firm is most interested in medical devices, artificial intelligence, robotics, and mobile health. The firm is seeking post-prototype innovations that are FDA cleared or are close to receiving clearance. Within therapeutics, the firm is interested in therapeutics for large disease markets such as oncology, neurology, and metabolic diseases. The firm is open to all modalities with a special interest in immunotherapy and cell therapy.

The firm is in search of ambitious companies with strong, experienced management teams. The firm takes a hands-on approach to portfolio companies and can work with incomplete teams. The firm can contribute expertise in essential services: branding, marketing, channel development, overseas expansion, human resources and finance. The firm may also request distribution or negotiation rights in China.

Hot Mandates

The firm is focused on therapeutics companies and does not invest in medical devices, diagnostics, or digital health. The firm is open to considering assets of very early stages, even those as early as lead optimization phase. The firm considers various modalities, including antibodies, small molecules, and cell therapy. Currently, the firm is not interested in gene therapy. Indication-wise, the firm is most interested in oncology and autoimmune diseases but has recently looked at fibrotic diseases and certain rare diseases as well.

The firm is opportunistic across all subsectors of healthcare. Within MedTech, the firm is most interested in medical devices, artificial intelligence, robotics, and mobile health. The firm is seeking post-prototype innovations that are FDA cleared or are close to receiving clearance. Within therapeutics, the firm is interested in therapeutics for large disease markets such as oncology, neurology, and metabolic diseases. The firm is open to all modalities with a special interest in immunotherapy and cell therapy.

A strategic investment firm of a large global pharmaceutical makes investments ranging from $5 million to $30 million, acting either as a sole investor or within a syndicate. The firm is open to considering therapeutic opportunities globally, but only if the company is pursuing a market opportunity in the USA and is in dialogue with the US FDA.

The firm is currently looking for new investment opportunities in enterprise software, medical devices, and the healthcare IT space. The firm will invest in 510k devices and healthcare IT companies, and it is very opportunistic in terms of indications. In the past, the firm was active in medical device companies developing dental devices, endovascular innovation devices, and women’s health devices.

A venture capital firm founded in 2005 has multiple offices throughout Asia, New York, and San Diego. The firm has closed its fifth fund in 2017 and is currently raising a sixth fund, which the firm is targeting to be the largest fund to date. The firm continues to actively seek investment opportunities across a […]

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